Inflation in the Real World

This little piece published by Casey Research demonstrates the big difference between what the government statistics are reporting and what’s going on in the real world. How the government can claim that the inflation rate, as measured by the CPI, is only 1.1% is beyond me when you see the increase in prices of commodities in the chart above. This is akin to the government's use of the core inflation indicator, which is a measure of inflation which excludes certain items that face volatile price movements, notably food and energy. So the government tries to play down inflation by using the core indicator; so I guess as long as you don't have to eat, heat or cool your home, and drive a car there is no inflation, NOT.